Thunder making a mockery of new CBA with Jalen Williams max extension

While most NBA teams are cutting payroll to avoid luxury tax penalties, the Oklahoma City Thunder are spending aggressively early in the offseason, signing expensive contract extensions with eligible players. The latest deal is a five-year, up to $287 million max rookie extension for All-Star Jalen Williams.

The Thunder have committed a potential total of $877.21 million in new contracts, with $822 million of that going to their core trio: Shai Gilgeous-Alexander, Chet Holmgren, and Jalen Williams. This spending spree has raised concerns about compliance with the league's new Collective Bargaining Agreement (CBA), with some pointing to the Boston Celtics as a cautionary tale.

The CBA, implemented in summer 2023, aims to prevent dynasties and promote parity by imposing financial penalties and restrictions through mechanisms like the luxury tax, repeater tax, and specific hard salary caps known as the first and second tax aprons. Given their massive commitments, it appears the Thunder are destined to become a second-apron team.

However, projections show the Thunder are financially positioned to avoid these penalties. Even with all roster spots filled, they are estimated to be about $8 million below the first tax apron for the 2025-26 season. When the extensions for Gilgeous-Alexander, Williams, and Holmgren start in 2026-27, they are still projected to have roughly $17 million of space below the second apron.

This flexibility stems from having several players on cost-efficient, easily movable contracts (like Isaiah Hartenstein, whose $28.5 million team option could be declined), numerous players still on rookie-scale deals, and a wealth of draft capital. Consequently, despite their significant spending on their star trio, the Thunder have the means to keep their championship-contending team together while completely avoiding the restrictive second apron, defying the CBA's intent to prevent sustained dominance.